Elbit Systems Surges on Record Earnings, $1.6B Contract

Elbit Systems' stock rose 5% after announcing a $1.635 billion European contract and Q2 earnings that beat analyst forecasts, with revenue up 21% YoY to $1.97 billion and non-GAAP EPS at $3.23. The company's record $23.8 billion order backlog provides multi-year revenue visibility, while a 25% dividend increase demonstrates confidence in the company's future.

Elbit Systems' (NASDAQ: ESLT) stock rose by approximately 5% in premarket trading on Wednesday following the announcement of a significant $1.635 billion contract in Europe and the release of its Q2 2025 financial results. The defense technology firm reported a 21% year-over-year (YoY) increase in revenue to $1.97 billion, surpassing analyst expectations. On a non-GAAP basis, net profit climbed to $151 million, or $3.23 per share, representing a 63% increase compared to the previous year [1].

The company also disclosed a substantial order backlog of $23.8 billion at the end of the second quarter, up $700 million from the prior period. About 68% of this backlog comes from clients outside Israel, with approximately 46% of the orders scheduled for delivery in the remainder of 2025 and 2026 [2]. This strong order backlog provides multi-year revenue visibility for Elbit Systems, underscoring the company's robust demand and growth potential.

In addition to its financial performance, Elbit Systems' stock price has seen increased institutional investment. For instance, Deutsche Bank AG and Charles Schwab Investment Management have notably increased their holdings in the company [3]. Analysts have also upgraded the stock to a "strong-buy" rating, with new price targets set at $500.00 [2].

Elbit Systems' strong historical performance and its focus on innovation and strategic acquisitions position it well for continued growth. The company's growing backlog and robust financial performance demonstrate confidence in its future prospects. As global defense spending continues to rise in response to geopolitical tensions, Elbit Systems appears well-positioned to capitalize on these market trends through its comprehensive product portfolio and established global presence.

References:
[1] https://investorshub.advfn.com/market-news/article/14576/elbit-systems-wins-1-6-billion-european-contract-posts-stronger-q2-results-shares-rise
[2] https://www.investors.com/news/elbit-systems-earnings-q2-2025-eslt-stock-moving-average-isarel-defense-contract/
[3] https://za.investing.com/news/earnings/elbit-systems-discloses-16bn-european-order-reports-higher-q2-results-stock-up-3835629